RMD Stock Overview
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets.
No risks detected for RMD from our risk checks.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$218.75|
|52 Week High||US$275.66|
|52 Week Low||US$189.40|
|1 Month Change||-0.85%|
|3 Month Change||4.35%|
|1 Year Change||-17.57%|
|3 Year Change||69.73%|
|5 Year Change||183.10%|
|Change since IPO||32,458.14%|
Recent News & Updates
Here's Why We Think ResMed (NYSE:RMD) Is Well Worth Watching
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...
ResMed: Further Downside Is Warranted
Summary ResMed has done well to grow its top and bottom lines recently, but this doesn't make the company a great investment prospect. Shares look very pricey at this point in time and should warrant further downside moving forward. This is the case even with current catalysts being factored into the equation. Unfortunately, buying into a great company does not always equate to buying into a company that's going to generate a strong return. If life were that easy, everybody could win in the stock market. One company that has strong operational performance and that will likely have a bright future ahead for it is ResMed (RMD). Over the past several years, ResMed which focuses on providing digital health and cloud-connected medical devices associated with sleep and respiratory care, as well as SaaS (Software as a Service) functionality, has performed exceptionally well. Having said that, shares the business do look drastically overpriced at this time. This may not seem the case when looking at it relative to some similar companies. But at the end of the day, buying into the business is a truly speculative bet on whether long-term growth will be strong enough to justify current pricing. Mixed results Back in early March of this year, I wrote a bearish article about ResMed. In that article, I readily acknowledged that the company was a fantastic one. I lauded the company's track record for sales, profit, and cash flow growth. I also said that, in the long run, it would likely continue to fare well for its investors. But I couldn't get over just how pricey shares were, even though they looked fairly valued compared to similar businesses. At the end of the day, I ended up rating the business a 'sell', reflecting my belief that it would likely underperform the broader market for the foreseeable future. So far, the company has done just that. While the S&P 500 is down by 7.8% since the time of my article's publication, shares of ResMed have delivered a loss of 11.4%. Author - SEC EDGAR Data Some of this decline is certainly due to the fact that shares were expensive. But another contributor is likely related to the fact that some of its performance figures have not been particularly appealing. First, however, we should touch on sales. This was a bright spot for the company recently. For the 2022 fiscal year as a whole, revenue came in at $3.58 billion. That represents an increase of 11.9% over the $3.20 billion generated in 2021. It's also the highest that revenue has ever been for the enterprise. The strongest growth for the company came from the Devices sales that it generated in the US, Canada, and Latin America. Sales growth here was a robust 24% year over year. And for the region as a whole, revenue growth was 15%. By comparison, revenue growth across Europe, Asia, and other select markets was a more modest 7%. The growth that the company experienced here at home came even though the company faced some pain associated with foreign currency fluctuations. In its Sleep and Respiratory Care business, for instance, international currencies hit revenue to the tune of $43 million in 2022. But this was more than offset by an increase in unit sales for its devices and masks. This rise in revenue brought with it positive earnings results. In 2022 as a whole, net income came in at $779.4 million. That dwarfs the $474.5 million generated in 2021. And it's also well above the $621.7 million the company reported in 2020. This is not to say that everything went well. Operating cash flow for the company did decline, dropping from $736.7 million in 2021 to $351.1 million in 2022. But if we adjust for changes in working capital, this metric would have risen from $735.3 million to $1.06 billion. Meanwhile, EBITDA for the company was also on the rise, climbing from $1.03 billion to $1.12 billion. Author - SEC EDGAR Data At present, we don't really know what to expect for the 2023 fiscal year. But management did say in their annual report that current supply chain issues are expected to impact the company throughout at least part of its 2023 fiscal year. Regardless of what that will end up looking like, shares do look rather pricey if we rely on 2022's figures. The price-to-earnings multiple of the company, for instance, comes in at 41.5. That's down from the 68.2 reading we get using 2021's results. The price to adjusted operating cash flow multiple stands at 30.6. If we were to use results from 2021, this multiple would be 44. Meanwhile, the EV to EBITDA multiple comes out to 29.3. Using last year's figures, this multiple would have been 32. As part of my analysis, I did compare the company to five similar firms. On a price-to-earnings basis, the four companies with positive results traded with multiples of between 28.6 and 201.8. Our prospect was cheaper than all but one of the firms. Using the price to operating cash flow approach, the range for the five firms was between 13.5 and 55.6, while for the EV to EBITDA approach, the range was between 11.6 and 87.2. In both of these cases, three of the five companies were cheaper than our prospect. Company Price / Earnings Price / Operating Cash Flow EV / EBITDA ResMed 41.5 30.6 29.3 DexCom (DXCM) 201.8 55.6 87.2 Baxter International (BAX) 28.6 15.6 13.6 Koninklijke Philips (PHG) N/A 13.5 15.8 IDEXX Laboratories (IDXX) 45.3 50.4 31.7 Zimmer Biomet Holdings (ZBH) 77.9 14.9 11.6
Estimating The Intrinsic Value Of ResMed Inc. (NYSE:RMD)
In this article we are going to estimate the intrinsic value of ResMed Inc. ( NYSE:RMD ) by taking the forecast future...
|RMD||US Medical Equipment||US Market|
Return vs Industry: RMD exceeded the US Medical Equipment industry which returned -31.4% over the past year.
Return vs Market: RMD exceeded the US Market which returned -22.1% over the past year.
|RMD Average Weekly Movement||3.6%|
|Medical Equipment Industry Average Movement||8.6%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: RMD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RMD's weekly volatility (4%) has been stable over the past year.
About the Company
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.
ResMed Fundamentals Summary
|RMD fundamental statistics|
Is RMD overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|RMD income statement (TTM)|
|Cost of Revenue||US$1.51b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||5.32|
|Net Profit Margin||21.78%|
How did RMD perform over the long term?See historical performance and comparison
0.8%Current Dividend Yield
Is RMD undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for RMD?
Other financial metrics that can be useful for relative valuation.
|What is RMD's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does RMD's PE Ratio compare to its peers?
|RMD PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
BAX Baxter International
IDXX IDEXX Laboratories
EW Edwards Lifesciences
Price-To-Earnings vs Peers: RMD is good value based on its Price-To-Earnings Ratio (41.1x) compared to the peer average (75x).
Price to Earnings Ratio vs Industry
How does RMD's PE Ratio compare vs other companies in the US Medical Equipment Industry?
Price-To-Earnings vs Industry: RMD is expensive based on its Price-To-Earnings Ratio (41.1x) compared to the US Medical Equipment industry average (31.9x)
Price to Earnings Ratio vs Fair Ratio
What is RMD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||41.1x|
|Fair PE Ratio||34.4x|
Price-To-Earnings vs Fair Ratio: RMD is expensive based on its Price-To-Earnings Ratio (41.1x) compared to the estimated Fair Price-To-Earnings Ratio (34.4x).
Share Price vs Fair Value
What is the Fair Price of RMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: RMD ($218.75) is trading below our estimate of fair value ($249.81)
Significantly Below Fair Value: RMD is trading below fair value, but not by a significant amount.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is ResMed forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RMD's forecast earnings growth (12% per year) is above the savings rate (1.9%).
Earnings vs Market: RMD's earnings (12% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: RMD's earnings are forecast to grow, but not significantly.
Revenue vs Market: RMD's revenue (8.1% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: RMD's revenue (8.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RMD's Return on Equity is forecast to be high in 3 years time (23.6%)
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How has ResMed performed over the past 5 years?
Past Performance Score6/6
Past Performance Score 6/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RMD has high quality earnings.
Growing Profit Margin: RMD's current net profit margins (21.8%) are higher than last year (14.8%).
Past Earnings Growth Analysis
Earnings Trend: RMD's earnings have grown by 16.4% per year over the past 5 years.
Accelerating Growth: RMD's earnings growth over the past year (64.3%) exceeds its 5-year average (16.4% per year).
Earnings vs Industry: RMD earnings growth over the past year (64.3%) exceeded the Medical Equipment industry 0.6%.
Return on Equity
High ROE: RMD's Return on Equity (23.2%) is considered high.
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How is ResMed's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: RMD's short term assets ($1.9B) exceed its short term liabilities ($689.3M).
Long Term Liabilities: RMD's short term assets ($1.9B) exceed its long term liabilities ($1.0B).
Debt to Equity History and Analysis
Debt Level: RMD's net debt to equity ratio (14.9%) is considered satisfactory.
Reducing Debt: RMD's debt to equity ratio has reduced from 54.6% to 23.1% over the past 5 years.
Debt Coverage: RMD's debt is well covered by operating cash flow (45.3%).
Interest Coverage: RMD's interest payments on its debt are well covered by EBIT (44.8x coverage).
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What is ResMed current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|ResMed Dividend Yield vs Market|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Medical Equipment)||1.9%|
|Analyst forecast in 3 Years (ResMed)||1.0%|
Notable Dividend: RMD's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: RMD's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (4.69%).
Stability and Growth of Payments
Stable Dividend: RMD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: RMD is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Earnings Payout to Shareholders
Earnings Coverage: RMD is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: RMD is not paying a notable dividend for the US market.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mick Farrell (50 yo)
Mr. Michael J. Farrell, also known as Mick, BE, SM, MBA, serves as Member of Advisory Board at Green Sun Medical, LLC. He serves as the Chief Executive Officer of ResMed Pty Ltd. Mr. Farrell has been the C...
CEO Compensation Analysis
|Mick Farrell's Compensation vs ResMed Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||n/a||n/a|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||US$10m||US$1m|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||n/a||n/a|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||US$10m||US$1m|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||n/a||n/a|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||US$10m||US$967k|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||n/a||n/a|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||US$9m||US$934k|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||n/a||n/a|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||US$8m||US$890k|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||n/a||n/a|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||US$7m||US$845k|
Compensation vs Market: Mick's total compensation ($USD10.39M) is about average for companies of similar size in the US market ($USD13.05M).
Compensation vs Earnings: Mick's compensation has been consistent with company performance over the past year.
Experienced Management: RMD's management team is seasoned and experienced (7.8 years average tenure).
Experienced Board: RMD's board of directors are considered experienced (6.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|22 Nov 21||SellUS$390,000||Carol Burt||Individual||1,500||US$260.00|
|15 Nov 21||SellUS$321,440||Carol Burt||Individual||1,187||US$270.80|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||63,123||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
ResMed Inc.'s employee growth, exchange listings and data sources
- Name: ResMed Inc.
- Ticker: RMD
- Exchange: NYSE
- Founded: 1989
- Industry: Health Care Equipment
- Sector: Healthcare
- Implied Market Cap: US$32.032b
- Shares outstanding: 146.43m
- Website: https://www.resmed.com
Number of Employees
- ResMed Inc.
- 9001 Spectrum Center Boulevard
- San Diego
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RMD||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jun 1995|
|RME||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jun 1995|
|0KW4||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jun 1995|
|RMD||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jun 1995|
|RMD *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jun 1995|
|RMD||ASX (Australian Securities Exchange)||CDI COM USD0.004 (10CDI/1SHS)||AU||AUD||Nov 1999|
|RSMD.F||OTCPK (Pink Sheets LLC)||CDI COM USD0.004 (10CDI/1SHS)||US||USD||Nov 1999|
|RMEA||DB (Deutsche Boerse AG)||CDI COM USD0.004 (10CDI/1SHS)||DE||EUR||Nov 1999|
|RMD||CHIA (Chi-X Australia)||CDI COM USD0.004 (10CDI/1SHS)||AU||AUD||Nov 1999|
|R1MD34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REPR 1 COM||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.